Gold shooting up, silver dropping????

[Silver Surfer]

Just wondering what the "Pro's" like Jim think is the reason for Gold and even other PM's shooting up, but silver is dropping?
Something just isn't right. I can see gold and other PM's going up SOME without silver following suit, but not the high increase we are seeing but silver dropping... Thoughts?

 

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[jim4silver]

Thanks for the term "pro", but I would say more like semi-educated "novice" .

I think gold is going up now because of all the world unrest and economic problems here and in Europe. If you check the news today there is so much stuff going on it is crazy. No matter what anyone says I feel gold is the only PM that is truly seen as "money" by the ultra wealthy institutions and central banks, etc, and they have been buying alot lately it seems. Silver was used as a currency (currency being an item used for exchange--money being a store of value over time) for thousands of years and is a precious metal, but from everything I have read when times get crazy the big money prefers gold.

Another possible answer is that silver is being "manipulated" to be kept low by certain parties and/or organizations. That might be true but I don't know if that is wholly responsible for silver not rising now. It seems that if enough interest arose in obtaining physical silver and paper silver, the price should go up. The online coin dealer Tulving, who is a very well known large dealer, lists that he has over 800,000 oz of silver in stock. I check out that site every now and then and I don't remember ever seeing that many oz available at any one time. So there is plenty of silver available for retail buyers (people like you and me). Whether large amounts are available on the exchanges for the big boys I don't know.

I wouldn't fret about the silver price though. If your investment horizon is more than short term, I believe you will see silver go way higher as long as the dollar continues to deteriorate and economic conditions don't improve over the world for a couple of years.

Many times an asset or commodity becomes the "in thing" and right now gold is it. Silver was it last year as it climbed to 50 while gold crept along. If/when the fed announces QE3 again I believe you will see the stock market take off and PMs drop for a short time since those running to gold for safety might feel OK about stocks again. If the stock market keeps dropping I believe the fed will step in and stop the bleeding so to speak. But that might not be for a while.

Jim

 

[Emperor Findus Cladius]

As well as a PM, silver has many industrial uses. With the big hit to the market, many people are seeing an probable industrial slowdown. And with that the industrial demand for silver will decrease. Many of the other commodities such as copper have also taken a hit.

 

[hombre_de_plata_flaco]

As well as a PM, silver has many industrial uses. With the big hit to the market, many people are seeing an probable industrial slowdown. And with that the industrial demand for silver will decrease. Many of the other commodities such as copper have also taken a hit.

Excellent point. I too had noticed that the other "industrial" metals like copper and lead took a dive along with the Dow, so that made sense. If you look at it in those terms, silver has actually done well just to stay at or near the current level it was at before the credit downgrade.

 

[Silver Surfer]

Thanks Jim and others... Great points, but I am leaning towards manipulation.. Why? Because the last time world turmoil affected PM's, all of them went up, and silver spiked crazy due, I feel, because it is so affordable for the "common" man compared to gold... So realistically, it should go up a lot more than it is with gold doing what it is.. Hell, the fact that Chinese can now buy physical silver should be enough to push it up to $50 alone (IMHO)... But with firms like JP Morgan doing so much shorting on silver, they have the most to lose and the "investigation" that the Govt was doing, what happened to that?? Seems to have simply gone away.
Bottom line, I can see it not skyrocketing the way gold is, but holding at or below $40 just doesn't smell right.
But, in it for long term, so no worries.
Did just send in what will come back to me in pure form 1.5 ounces to ARA... hope when I get it, gold doesn't suddenly crash. Making it into an ingot or coin to give my wife for her b-day on the 31st. She still kicks herself for buying 2 oz when it was $1300 but then panicked and sold it back two days later. Now she can have some again... Well, until we have to sell it to pay bills... LOL...

 

[idigdirt]

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